FSC and other expenses

mstephensr · Mar 27, 2008

I am having trouble calculating expenses. I have a couple questions about how to calculate an estimate of my costs of operating a Tractor Trailer.
1.) How is fuel surcharge paid to O/O? Is it paid in more cents per mile or just a flat rate based on the load or what?
2.) What about ins, plates, carrier fees, sat fees, etc.....
3.) If I lease on to a carrier am I required to stay with them a certain time period or can I take my truck elsewhere at anytime?

Thanks

LDB · Mar 27, 2008

Get the spreadsheet from the OOIDA website to use as a template. It has places to plug in plates, insurance, fuel etc. as well as anticipated annual miles so you get a cpm figure. As far as I know, loads are negotiated based on dollars. Once the dollar amount is set it's divided by the miles to get a rate per mile. The fsc is also a certain number of dollars and the carrier does the arithmetic to tell you how much per mile. Now, if you are with a carrier that pays percentage, they may just tell you X dollars for the run and Y dollars of fsc money. Then you do the arithmetic to convert to cpm. If you run your own authority and negotiate them yourself then you do it whichever way your want, either so much flat rate or so much per mile.

mstephensr · Mar 27, 2008

Well for instance I know that FedEx basically comes out to where the O/O only pays approximately $1.25/ gal. So do most fuel surcharges come out about the same or is this an extremely good rate that they pay ast fedex?

LDB · Mar 27, 2008

I don't know about other companies. Some of our fsc is very good and some isn't good. Some just about pay all the fuel and others would only take fuel from $4 to maybe $2.50 a gallon. Part of that depends on the efficiency of the truck of course as well as the speed of the driver.

mstephensr · Mar 27, 2008

LDB thanx. The spreadsheet is very helpful, but still not sure how to estimatre alot of the costs to get an accurate figure. Any suggestions?

LDB · Mar 27, 2008

If you are leaning heavily to a particular carrier as the recruiter for a list of expenses, i.e. QC, insurance, escrow, etc. and they should be able to provide exact weekly deduction numbers. On other things you'll have to estimate the best you can.

pjjjjj · Mar 28, 2008

mstephensr said:
LDB thanx. The spreadsheet is very helpful, but still not sure how to estimatre alot of the costs to get an accurate figure. Any suggestions?

I think insurance rates have a lot to do with which truck, driving experience, driving history, and which carrier; can probably range from 200-800+/mo; qc seems to be around 100+ as an est; fuel would depend on vehicle/prices/driving habits/maint; the carrier takes an escrow out of your settlement usually, for awhile, until it reaches a certain level, depending which carrier and type of vehicle; tolls, depending where you're driving, and whether you or the carrier pays them; some carriers charge for putting their signage on your truck; some charge for installation of the qc, and/or taking it out when you leave the carrier; might need a transponder installation if you're crossing border alot; fsc seems to vary all the time, with carrier, with customer, with load? cellphone costs; meal costs; upfront costs like if you want a gps, cb, cooler, stuff for your truck, whatever; some carriers pay for plates, some don't; truck maintenance and repairs; you can estimate how many miles you'll be offered by your carrier, and then come up with an imaginary figure to plug in for deadhead miles; you might be requried to purchase uniforms; as you can see, there are way too many variables for someone to come up with an easy answer; your best bet is to give the spreadsheet mentioned, your best shot, and go from there.
When you sign on with a carrier, the contract will specify how long you are bound to stay with them, there might be a minimum length of time, and if you leave before that time, it will specify what additional costs you will incur, so be sure to read your contract over really well!
Like has been suggested, be sure to get a good lawyer and accountant you can call on for advice and look over your stuff, answer questions, etc.

nightcreacher · Apr 2, 2008

mstephensr,
it sounds to me you are about to jump into the unknown with both your two feet.If this is the first your dealing as an owner opperator,before signing anything,including the note on a truck,id advise,driving someone elses truck,and use their money as a learning experience.In expedite,what we do is not cut and dry.it takes more than just good work ethic.you should have cash on hand that you might be able to fall back on,

arrbsthw · Apr 4, 2008

mstephensr said:
Well for instance I know that FedEx basically comes out to where the O/O only pays approximately $1.25/ gal. So do most fuel surcharges come out about the same or is this an extremely good rate that they pay ast fedex?

It ain't what it's cracked up to be. Some get a better FSC
than others, depending on the size of your truck. A C unit gets less than a D and an E gets more than a D. If you are WG you may get a better rate than that, at least a couple WG's on
here say they get basically enough to only have to pay $1.25.

greg334 · Apr 4, 2008

arrbsthw said:
It ain't what it's cracked up to be. Some get a better FSC
than others, depending on the size of your truck. A C unit gets less than a D and an E gets more than a D. If you are WG you may get a better rate than that, at least a couple WG's on
here say they get basically enough to only have to pay $1.25.

Just a little correction, if you don't mind....

The FSC program is based on your truck size with an assumed MPG. D get better FSC than a C which gets better than a B but the last time I checked CR and DR units are the same - WG should not have anything to do with it but if it does, well don't get me started. It is supposed to bring down the price of fuel to $1.25 but I think that CC would also be bettered served if they had access to the pumps at FedEx ground like the ground contractors do.

nightcreacher · Apr 5, 2008

FECC gave us a paper with what the fsc will be. there is a varience,but our fsc will bring fuel costs down to somewhere betwen $1.20 and $1.25 per gallon,and that is if you are getting at least 6 mpg with your tractor.As ive stated in another post,you have fixed costs and variable costs.Now to make this easy,list on a piece of paper everything you might spend money on.pens, paper xm radio, cameras, cable tv with your cable for your computer,fuel,tolls motels,truck depreciation,truck insrance,interest on truck note,(actually the interest and depreciation will be more than your truck note)tire costs,monthly service,truck washes,waxing,or polishing,replacing lights,,any way,list all your item,put the ones that cost the same evey month on one side,those costs that very,with the number of miles you drive on the other side,now you can have a spread sheet,simple right?

Jack_Berry · Apr 5, 2008

and you have to remember that deadhead is usually not coverred well enough to pay for fuel. my carrier does not pay it. went 250 miles for a repositon and dh to a pu for a 687 mile load. well that was at 8mpg and that is 31 gallons and 125 bucks i will never have again.
i dropped and sat back and figured the load and i got a healty 34 dollars in my pocket. now a couple days before i shopped for food for the truck and dropped 60 bucks so i think i am a little behind.